Labcorp Holdings Inc.

Health Care
Medical Specialities
www.labcorp.com

Earnings Score
Moat Score
Safety Score

Market Cap $19.47B
PE 45
Debt $5.35B
Cash $1.52B
EV $23.30B
FCF $843.20M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$435.50M
EBIT	$747.40M
ROE	5%
ROA	4%
FCF	$843.20M
Equity	$8.17B
Growth Stability	24%
PE	44.7
PEG	-3.54
PB	2.38
P/FCF	23.09
P/S	1.53
Price/Cash	0.08
Debt/Equity	0.66
Debt/FCF	6.35
Net Margins	6%
Gross Margins	28%
Op. Margins	6%
Earnings CAGR	2%
Sales Growth YoY	7%
Sales Growth QoQ	2%
Sales CAGR	5%
FCF CAGR	5%
Equity CAGR	9%
Earnings Stability	0.01
Earnings Growth YoY	-8%
Earnings Growth QoQ	-18%

Earnings CAGR 5Y	-13%
Sales CAGR 5Y	-0%
FCF CAGR 5Y	-13%
Equity CAGR 5Y	0%
Earnings CAGR 3Y	-11%
Sales CAGR 3Y	-11%
FCF CAGR 3Y	-35%
Equity CAGR 3Y	-12%
Market Cap	$19.47B
Revenue	$12.71B
Assets	$18.61B
Total Debt	$5.35B
Cash	$1.52B
Shares Outstanding	83.7M
EV	23.3B
Earnings Score	6%
Moat Score	64%
Safety Score	53%
Final Score	41%
Working Capital	1.5B
Current Ratio	1.44
Gross Profit	$3.55B
Shares Growth 3y	-5%
Equity Growth QoQ	2%
Equity Growth YoY	4%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Laboratory Corp. of America is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing. With the addition of Covance, LabCorp also has a sizable footprint in the global contract research organization market.

SEC Filings

Direct access to Labcorp Holdings Inc. (LH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Labcorp Holdings Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Labcorp Holdings Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability 1%

loading chart...

Labcorp Holdings Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Labcorp Holdings Inc..

Years

Calculation mode

= $11B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$843M	$881M	$921M	$963M	$1B	$1.1B	$1.1B	$1.1B	$1.2B	$1.3B	$1.3B	$13B
DCF		$801M	$761M	$723M	$687M	$653M	$620M	$589M	$560M	$532M	$505M	$5.1B
Value	$11B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	9%	5%	8%	12%	8%	7%	11%	15%	9%	3%	6%
ROA	-	7%	9%	8%	8%	7%	12%	16%	9%	4%	4%
ROE	-	9%	13%	19%	13%	11%	17%	23%	13%	5%	5%

Bad Net Margins (6.23%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	9.49	7.19	6.31	6.61	6.34	3.31	2.05	3.62	5.78	6.35
Debt over Equity	1.21	1.39	1.17	1.06	0.88	0.87	0.62	0.53	0.53	0.64	0.66
Growth Stability	-	-	-	100%	100%	86%	100%	100%	81%	24%	24%

Bad Debt/FCF ratio (6.35)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.66)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (24%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	44%	11%	8%	9%	2%	21%	15%	-8%	-18%	-0%
Earnings YoY growth	-	-15%	68%	73%	-30%	-7%	89%	53%	-46%	-67%	-13%
Equity YoY growth	-	75%	11%	24%	2%	9%	24%	10%	-2%	-22%	0%
FCF YoY growth	-	36%	23%	28%	-19%	13%	68%	51%	-44%	-41%	-13%